When Ms. Karen Wong, president and chief executive of Wong, Inc., first saw the segmented income statement below, she flew into a rage: "When will we ever start showing a real profit? I'm starting immediate steps to eliminate those two unprofitable lines!"

Product Lines Total U V W Sales $250,000 $100,000 $75,000 $75,000 Variable expenses 119,000 37,000 35,000 47,000 Contribution margin 131,000 63,000 40,000 28,000 Traceable fixed expenses* 98,000 31,000 37,000 30,000 Common expenses, allocated 32,900 18,000 10,500 4,400 Operating income (loss) $ 100 $14,000 $ (7,500) $(6,400)